2 thoughts on “Spending When Abundant, Saving When Scarce

  1. Just came over from the Financial Samurai (nice article over there btw). And I had to chime in..

    I believe you’ve hit the nail on the head here. What I think you’re looking for is called the “Law of Scarcity”. It’s a fun little economic principal which basically says “if what you desire is in limited supply or seemingly limited supply, its perceived value increases.”

    Basically when you begin to run out of things (e.g. money) it’s perceived value increases. When you have $5 in your wallet do you want cold stone… What about $20, $100… At a certain point you see all those dollar bills and think to yourself, I can splurge a a little :)

    I know it happens to me all the time…

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